Friday, April 26, 2024
Bangladesh has witnessed a threefold rise in sunflower farming over the past fiscal year, thanks to a steady rise in demand for the oilseed crop and initiatives taken by the government to flourish the sector.
According to data provided by the Department of Agricultural Extension (DAE), a total of 15,400 hectares were used to cultivate sunflowers in FY 2020-21, three times higher than the DAE’s target of 5,501 hectares for the fiscal year.
“We have been working to develop the country’s edible oil market further by increasing our own production capacity. We are offering incentives for sunflower farming as there has been a rise in demand for sunflower oil in the country,” DAE Director (Crop wing) Khandker Abdul Wahed told The Business Post.
Talking to The Business Post, Mizanur Rahman, a sunflower farmer from Kamalpur of Moulvibazar, said: “Last year, I cultivated sunflowers in three acres. Initially, the government provided me with crop seeds, fertilizers and tilling costs to start sunflower farming.”
The DAE data also shows Bangladesh produced 5,725 tonnes of sunflower seeds in the fiscal year 2019-20, which was 3,052 tons in the previous year.
“At the end of the season, I harvested nearly 600 kilogrammes of sunflower seeds, which is a very good harvest considering the low costs required to farm the oilseed. I sold my harvest at Tk 2,400 per maund or Tk 60 per kilogramme,” Mizan added.
According to the Fortune Business Insight, the global sunflower oil market size was worth $18.5 billion in 2020, and is expected to reach $29.59 billion in 2028, exhibiting a compound annual growth rate (CAGR) of 6.12 per cent during the forecast period.
More than 90 per cent of Bangladesh's demand for sunflower oil is met through imports as a finished product. Bangladesh mainly imports sunflower oil from Turkey, Malaysia, Italy and Ukraine, among other countries, said traders.
Visiting several kitchen markets in Dhaka city, The Business Post found that most retailers were selling imported sunflower edible oil, such as Turkish brand Zade’s 5-litre can for Tk 1,500, Italian brand Olitalia’s 5-litre jar at Tk 1,300, and local Royal Chef’s 5-litre jar at Tk 850 to Tk 900.
According to wholesalers, Malaysian brand Kings sunflower oil, imported by Bangladesh Edible Oil Ltd, has been in the leading position in the retail market.
“Currently, we are selling 6,000 litres of sunflower oil per month from Karwan Bazar,” Ashikur Rahman, an executive of Kings Sunflower Oil, told The Business Post referring to the largest wholesale market in Dhaka.
Only one local manufacturer produces sunflower oil from both local and imported seeds, traders said.
Globe Edible Oil Company, a sister concern of Globe Pharmaceuticals, has been producing sunflower oil from seeds and bottles it under its Royal Chef brand.
“The present consumption pattern of sunflower oil in the country is quite encouraging and therefore, we are working to increase our production capacity,” Mustafa Uddin, general manager (sales and marketing) at Globe Edible Oil Ltd, told The Business Post.
The company is currently producing 6,000 tonnes to 7,000 tonnes of sunflower oil per annum. It has also been witnessing an annual growth of 7 per cent to 8 per cent.
Tax holiday on imports of sunflower seeds helped us to produce more as it reduces the manufacturing cost of the finished product, he added.
“If the government continues its existing policy, it would help the local industry to grow further, he added.
At the same time, many local large-scale oil manufacturers have also expressed their interest in entering the sunflower oil manufacturing market.
Talking to The Business Post, consumers said the rising demand for sunflower oil in Bangladesh comes from the middle-income group who now choose the edible oil for health benefits despite it being pricier than soyabean or mustard oil.
The rise in consumption of the edible oil was also propelled by doctors and nutritionists who advise people to shift to sunflower oil for health benefits.
“I was treated at a private hospital for neuro-complexities after having a mild stroke. After that, doctors advised me to consume sunflower oil,” Nazrul Islam, a resident of Dhaka’s Eskaton area, told The Business Post.
“As advised, I now use sunflower oil for my meals regularly and it tastes much better than soybean oil,” he added.
Talking to The Business Post, doctors say sunflower oil, among other vegetable oils, is better for people with high risk of cholesterol.
“Oils made of vegetable seeds are good for our health. Although soybean oil comes from a vegetable seed, sunflower, olive and mustard oils are more beneficial for health, especially for people at risk of high cholesterol. That is why we advise these oils for consumers,” Dr Lenin Chowdhury, an expert in preventive medicine and chairman of Health and Hope Hospital, told The Business Post.
